Royal Mail is set to cut as many as 2,500 jobs as part of a comprehensive overhaul designed to reduce overheads. The postal service, acquired by Czech billionaire Daniel Kretinsky in 2024, announced plans for a "significant transformation" of its business.
The job reductions, which represent less than two per cent of the company's total workforce, will take place between now and the end of 2027. These cuts will primarily impact head office and support function roles, with frontline postal delivery workers remaining unaffected.
Chief executive Alistair Cochrane stated that the proposed changes aim to eliminate duplication and allow for further investment in customer service. This move follows a period of declining letter usage and scrutiny over delivery performance, with letter volumes plummeting over 70 per cent from their peak in the mid-2000s.
The job cuts are the first since Kretinsky completed his £5.3bn acquisition of Royal Mail last year. The company has since shifted its focus towards parcels and has faced criticism regarding its delivery track record, including a £21m fine from Ofcom in June for missing first-class mail targets.